JUSTIFICATIONS FOR A WAIVER
• Critical Standards Not Met by FPI Product
It is within the purview of federal customers to establish the requirements for products that best meet the government’s needs.
The Federal Acquisition Regulation, Part 11, encourages the use of commercial items and multiple suppliers, and discourages the use of brand names or items particular to one manufacturer.
If the customer determines that an FPI product is otherwise comparable to products available from the private sector, but the FPI product does not meet the buying activity’s critical standards, a request for waiver is justified.
If a federal buying activity specifies certain critical standards for a product which FPI provides, FPI must be afforded the opportunity to demonstrate whether its product meets these standards.
FPI’s statute requires that it offer products to federal agencies at “not to exceed current market price.” In order to prevent federal customers from paying more for an FPI product than a comparable product from the private sector, the FPI Board of Directors adopted a resolution specifying that, “FPI grant waivers in all cases where the private sector provides a lower price for a comparable product that FPI does not meet.”
This is not a blanket waiver. If the price of an FPI product is higher than the price offered by the private sector for a comparble product considered by the federal agency to be the “best value”, the federal agency shall submit sufficient information so that FPI can determine whether to match the price of the private sector offer or grant a waiver.
So that FPI may make an informed judgement to match the offered price of the private sector supplier, or to grant a waiver, the federal agency shall provide the following information:
(a) total price offered by the private sector supplier, including the pricing of individual sub-elements of an overall project, and
(b) any modifications to the agency’s initial requirements that would affect the price of the winning vendor, including design changes, authorized product substitutions, extended delivery schedules, applicable penalty provisions, and similar price-related conditions.(c) The federal agency contracting officer shall provide written assurance to FPI that, if a waiver is granted by FPI, the federal agency intends to make an award to the private sector firm in conformity with the offer submitted to FPI for review, or inform FPI of the changed requirements or other circumstances necessitating a modification to the requirements prior to award.
Within five business days of FPI’s receipt of all required information,
FPI shall either grant a waiver or agree to perform the work at a price
equal to, or less than, the price offered by the private sector “best
value” provider.
• Delivery
The delivery date should be specified by the month, day, and year product is required on site.
Delivery requirements inconsistent with those on the General Services Administration Federal Supply Schedule require written certification from the contracting officer, that the items are available from outside sources within the required time frame noted in the waiver request.
